Skirting ethics rules, Kagen raises funds off legislation

BILL PAYMENT - U.S. Rep. Steve Kagen, D-WI, made this e-mail fundraising appeal based on legislation he is sponsoring. House ethics rules prohibit linking "official acts," such as legislation, to campaign fundraising.

Despite an ethics ban on linking campaign contributions to “official acts,” including legislation, U.S. Representative Steve Kagen, D-WI, last week sent a fundraising appeal based on his sponsorship of a bill in the House of Representatives, research by the Majority Accountability Project (www.majorityap.com).

Kagen’s campaign committee, “Kagen 4 Congress,” requested campaign donations in support of the “No Discrimination in Health Care Insurance Act,” a bill the freshman Democrat claims will “prevent the health care insurance industry from denying coverage to someone because of a pre-existing condition.”

Recipients of the fundraising request were alerted to the fact that Kagen would speak about his bill on the floor of the House of Representatives, in a speech to be televised by the non-profit cable network C-SPAN.

The fundraising appeal notes that “Kagen’s effort to pass the No Discrimination in Health Care Insurance Act is being supported by two of the nation’s largest unions - SEIU and AFSCME.” Both unions are major financial supporters of Kagen.

In fact, the two unions combined for more than $186,100 in campaign contributions and spending on Kagen’s behalf in the last two years.

AFSCME gave Kagen $7,500 last year and other $5,000 in 2006. The union, which represents government workers, also spent $30,478 in attack ads against Kagen’s 2006 opponent, Wisconsin state legislator John Gard.

SEIU, the Service Employees International Union, has been far more generous. In 2006, the union reported spending $100,572 in support of Kagen’s Congressional campaign, and another $3200 attacking Gard. SEUI donated $5,000 to Kagen that year, and another $10,000 in 2007. Also in 2007, SEUI reported spending $24,353 for phone banking and printing on Kagen’s behalf.

The three January expenditures of $16,640, $6924, and $789 were identical to amounts the union spent on those same services during Kagen’s first campaign.

House ethics rules warn that the "solicitation for campaign or political contributions may not be linked with an official action taken or to be taken by a House Member.”

The rules further state “while the guidance set forth above is specifically addressed to the handling of casework matters, that guidance is applicable to all official actions taken by Members and staff, including with regard to legislation (emphasis added by House ethics committee).”